ING Direct 2013 Annual Report Download - page 48

MANAGEMENT BOARD NN GROUP N.V.
on 1 March 2014
MANAGEMENT BOARD ING VERZEKERINGEN N.V.
on 31 December 2013
Financial overview*/***
in EUR million 2013 2012
Operating result ongoing business** 886 833
Non-operating items ongoing business: -229 -779
of which gains/losses and impairments 97 70
of which revaluations 3-319
of which market and other impacts -329 -531
Japan Closed Block VA -669 105
Special items before tax -126 -451
Result on divestments and discontinued
operations 221 770
Result before tax 83 478
Taxation/minority interest 35 10
Net result 48 468
New sales life insurance (APE) 1,227 1,353
Total administrative expenses ongoing business 1,807 1,806
Cost/income ratio ongoing business (adm. exp./
operating income) 37.2% 36.1%
Investment Management AuM (end of period,
in EUR billion) 174 185
Combined ratio (Netherlands Non-life,
year-to-date) 101.5% 101.5%
NN Group IGD Solvency ratio 257% 236%
* Underlying numbers are derived from IFRS-EU, excluding the impact
of divestments, discontinued operations and special items.
** Operating result is underlying result before tax excluding non-operating
items.
*** Excluding the results of the discontinued operations of ING U.S. and the
results of Insurance Other.
Operating result ongoing business
in EUR million 2013 2012
Netherlands Life 686 604
Netherlands Non-life 79 103
Insurance Europe 199 219
Japan Life 162 196
Investment Management 130 109
Other -371 –398
Total 886 833
Reconciliation from Operating result ongoing business to
Underlying result before tax
in EUR million 2013 2012
Operating result ongoing business* 886 833
Non-operating items ongoing business -229 -779
Japan Closed Block VA -669 105
Underlying result before tax NN Group -12 159
* Excluding the results of the discontinued operations of ING U.S. and the
results of Insurance Other.
R.A.J.G. (Ralph) Hamers
chief executive officer
E. (Lard) Friese
vice-chairman
D. (Delfin) Rueda
chief financial officer
S.D. (Doug) Caldwell
chief risk officer
P.G. (Patrick) Flynn
W.F. (Wilfred) Nagel
D.E. (Dorothee) van Vredenburch
ING made significant progress restructuring its insurance and
investment management businesses in 2013. In Europe, NN Group
progressed towards becoming a standalone business, significantly
transforming its operations. ING U.S. was listed on the New York
Stock Exchange and the divestment of the Asian insurance and
investment management businesses was largely completed. In all
itsbusinesses, ING continued to work towards improving the
customer experience.
FINANCIAL DEVELOPMENTS
The operating result ongoing business of NN Group was EUR 886
million in 2013, a 6.4% increase compared with EUR 833 million in
2012, mainly driven by higher operating results for Netherlands
Life,Investment Management and the Other segment. This
improvement was partially offset by lower operating results for
Insurance Europe, Japan Life and Netherlands Non-life.
The loss from non-operating items related to ongoing business
improved to EUR 229 million in 2013 from EUR 779 million in 2012.
Revaluations, which amounted to a loss of EUR 319 million in 2012
due to the impact of negative revaluations of equity hedges and
real estate investments of Netherlands Life, improved to a gain of
EUR 3 million in 2013. The provision for guarantees on separate
account pension contracts (net of hedging) in the Netherlands had
a EUR 202 million lower adverse impact as reflected in market and
other impacts.
The result before tax of Japan Closed Block VA was a loss of EUR
669 million in 2013, compared with a profit of EUR 105 million in
2012. This decrease was primarily due to a EUR 575 million charge
in order to bring the reserve adequacy of the business line to the
50% confidence level as of 1 October 2013, due to a change in the
segmentation of operations that was introduced in the fourth
quarter of 2013.
Special items before tax improved to a loss of EUR 126 million in
2013 from a loss of EUR 451 million in 2012, as a result of the
provisions set up for the restructuring programme in the
Netherlands in 2012 and reduced costs for the operational
separation from ING in 2013.
Results on divestments and discontinued operations was EUR 221
million in 2013, compared with EUR 770 million in 2012. The result
in 2013 mainly reflected NN Group’s share in net result from
discontinued operations. Furthermore, the gain on the sales of the
insurance operations in Hong Kong, Macau and Thailand were
offset by the loss on the sale of ING Life Korea. The result in 2012
reflected the gain on the sale of Insurance Malaysia and NN
Group’s share in the net result from discontinued operations, partly
offset by goodwill write-offs on the insurance and investment
management operations in Korea.
The result before tax decreased to EUR 83 million in 2013,
compared to EUR 478 million in 2012. This decrease was the result
of lower results on divestments and a decrease in the result for
Japan Closed Block VA as a result of the one off charge of EUR 575
million, partly offset by a lower loss of non-operating items and
lower adverse impact from special items.
46 ING Group Annual Report 2013
Insurance overview